CINCINNATI, Oct. 22 /PRNewswire/ -- Suburban Bancorporation (NASDAQ: SBCN) the holding company for Suburban Federal Savings Bank, today reported net income for its fiscal 1994 first quarter ended Sept. 30, 1993, of $1,531,885, compared to $569,000 for the comparable quarter in fiscal 1993. Per share information is unavailable since the initial public offering of the company's stock was Sept. 30, 1993.
The results of operations for the first quarter of fiscal 1994 included a one-time gain of $1.17 million for the cumulative effect of a change in the method of accounting for income taxes. Fiscal 1993 results include the effect of a recovery of $745,000 from assets previously charged off, which was partially offset by the establishment of a $400,000 reserve for real estate acquired in settlement of loans and the write-off of goodwill of approximately $235,000. Earnings from operations for the 1994 first quarter was $358,000 compared to $459,000 for the comparable period in fiscal 1993.
The lower earnings are primarily attributable to lower net interest income, which was down $147,000 in the first quarter of fiscal 1994 compared to the same period for 1993. The two primary reasons for this decline were the downward repricing of adjustable rate mortgages and the replacement of repaying commercial and multifamily loans on the balance sheet with lower yielding single family loans.
On Sept. 30, 1993, the company completed its initial public offering by selling 1,581,710 shares of stock at $10.00 per share. After the conversion the company had total assets of $163.6 million, net loans of $112.1 million and stockholders' equity was $24.8 million or 15.2 percent of assets.
Suburban Federal Savings bank has eight full service offices in the greater Cincinnati metropolitan area to serve customers.
SUBURBAN BANCORPORATION, INC. AND SUBSIDIARY
Consolidated Statements of Operations
Three Months Ended Sept. 30, 1993, and 1992 (Unaudited)
(Dollars in thousands)
(Unaudited)
Three Months Ended
Sept. 30, Sept. 30,
1993 1992
STATEMENT OF OPERATIONS
Interest Income $2,998 $3,430
Interest Expense 1,673 1,958
Net Interest Income 1,325 1,472
Provision for Losses(A) 19 (725)
Gain on Sale of Loans 67 73
Non-interest Income 145 141
Non-interest Expense(B) 956 1,594
Cumulative Effect of Accounting
Change(C) 1,173 0
Net Income Before Taxes 1,735 817
Income Taxes 203 248
Net Income $1,532 $569
(A) -- In 1992 reflects recovery of $745,000 from an asset previously written off.
(B) -- In 1992 includes write-off of $235,000 goodwill, and a $400,000 provision for losses on real estate acquired in settlement of loans.
(C) -- In 1993 includes $1.173 million cumulative effect of a change in the method of accounting for income taxes.
SUBURBAN BANCORPORATION, INC. AND SUBSIDIARY
Selected Consolidated Financial Information
(Dollars in thousands, except per share data)
Balance Sheets
Sept. 30, 1993
(Unaudited) June 30, 1993
Total Assets(D) $163,609 $150,670
Investment Securities 2,098 2,098
Loans, Net 112,094 109,657
Allowance for Losses 3,037 3,059
Real Estate Acquired by Foreclosure 2,597 2,950
Deposits 120,289 122,247
Borrowed Funds 17,020 17,187
Stockholders Equity(D) $ 24,806 $ 10,184
Average Shares Outstanding(D) 1,581,710 0
Per Share and Ratio Data
Book Value per Share(D) $15.68 NA
Equity to Assets 15.16 pct 6.76 pct
Return from Operations to Average
Equity (Annualized)(E) 8.19 pct 12.89 pct
(D) -- On Sept. 30, 1993, the company closed its initial public offering. Total shares issued and net proceeds were 1,581,710 and $14,914,000 respectively.
(E) -- For Sept. 30, 1993 the one-time gain of $1.17 million on the change in accounting method was deducted from income.
-0- 10/22/93
/CONTACT: Joseph F. Hutchison of Suburban Bancorporation, 513-489-4888/
(SBCN)

CO: Suburban Bancorporation ST: Ohio IN: FIN SU: ERN

BM-SM -- CL007 -- 5611 10/22/93 09:24 EDT

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